From the 1970s, there has been a significant change in the US economy, as planners, private and state, shifted it toward financialization and the offshoring of production, driven in part by the declining rate of profit in domestic manufacturing.
If Palestinian Authority refuse to join the US-run negotiations, their basis for support would collapse. They survive on donations essentially. Israel has made sure that it's not a productive economy.
[There is] is all part of the whole neoliberal shift in the economy. But the parties have shifted to the right.